🏡 Japan Inheritance Tax Calculator

Inheritance tax (相続税, sōzokuzei) is paid by heirs on the estate of a deceased person. Japan has one of the highest inheritance tax rates in the world — up to 55% — but a generous exemption means most estates never pay. The basic deduction is 30 million yen plus 6 million yen per statutory heir. A typical family: spouse + 2 children = 48 million yen deduction, so a 40-million-yen estate (house + savings) usually pays nothing.

Even when tax applies, two deductions soften it: a spouse deduction that typically zeroes out the surviving spouse’s share, and the small-scale housing land discount that shrinks the assessed value of a family home’s land. Filing is due within 10 months of death. If you are planning lifetime transfers instead, compare with the gift tax calculator.

The classic method: total the estate (assets minus debts), subtract the basic deduction (30M + 6M per heir), then split the taxable amount among heirs in their statutory shares (法定相続分). Each share is taxed at the progressive rate, and the total is the estate’s tax. Heirs then pay in proportion to what they actually receive.

Basic deduction. The inheritance-tax basic deduction grows with the number of statutory heirs.

Formula: ¥30,000,000 + ¥6,000,000 × number of statutory heirs.

The spouse deduction (配偶者控除) lets a surviving spouse inherit up to 160 million yen (or their statutory share, whichever is larger) tax-free. Between the basic deduction, the spouse deduction and the housing-land discount, the large majority of Japanese estates escape tax entirely. Gifting during life moves the money earlier — compare with the gift tax calculator.

1. Enter the total estate value (assets minus debts) in yen.
2. Enter the number of statutory heirs (spouse + children, etc.).
3. Select whether a surviving spouse inherits (for the spouse deduction).
4. Click Calculate to see the deduction, taxable base and estimated tax.
5. Note the 10-month filing deadline and plan the payment.

Does everyone pay inheritance tax in Japan?

No — only about 8-10% of estates pay anything. The basic deduction (30M + 6M per heir) plus the spouse deduction mean most family homes and savings are completely exempt.

How is the basic deduction used?

It is subtracted once from the total estate before the remainder is allocated among heirs in statutory shares. A 48M deduction (spouse + 2 children) makes a 50M estate taxable on only 2M.

What counts in the estate?

Cash, bank accounts, real estate (at assessed value), securities, cars and household goods, minus debts and funeral expenses. Life insurance has a separate 5-million-yen-per-heir allowance, and certain death benefits are exempt.

What is the spouse deduction?

A surviving spouse’s inheritance is tax-free up to 160 million yen or the statutory share, whichever is larger. In practice, if the spouse inherits at least their share, the estate’s total tax can be dramatically reduced.

When is the tax due?

The return is filed and tax paid within 10 months of the death. Payment can be spread in instalments over up to 20 years for estates heavy in real estate, and payment in kind (物納) is possible for property.

Is it better to gift before death or leave it in the estate?

Gifts made within three years of death are added back into the estate. Gifts earlier than that — up to 1.1M/year per recipient tax-free — can shift wealth out of a high-bracket estate. For large sums the gift tax (55% cap) vs inheritance tax comparison determines the better route.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

The 30M + 6M/heir deduction is the key number: one heir = 36M, two = 42M, three = 48M. If your estate is near the line, a small amount of lifetime gifting (1.1M/year per recipient) can keep it under. Life insurance payouts have a separate allowance (500万 per heir), and retirement benefits get their own treatment — don’t count them into the raw estate. For most people the single best planning move is simply keeping a will that names heirs, because a messy intestate split wastes the statutory share framework. Real estate is valued at the fixed-asset assessment (路線価) — usually 70-80% of market — so the fixed asset tax assessment is a useful planning input.